Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the second quarter of fiscal year 2023.

For the three months ended May 31, 2023, the Company reported net earnings of $6.6 million or $0.77 per share compared to net earnings of $12.5 million or $1.46 per share a year ago, while consolidated sales were $142.3 million compared to $184.9 million last year.

For the six months ended May 31, 2023, the Company reported net earnings of $6.4 million or $0.75 per share compared to net earnings of $17.7 million or $2.06 per share a year ago, while consolidated sales were $248.3 million compared to $314.3 million last year.

Given the slowing economy and widespread market uncertainty, the decline in seasonal demand was in line with expectations. Goodfellow's experienced team has continued to provide excellent service to clients from coast to coast, while diligently managing increased overhead costs to achieve strong results. While these results are lower than last year, they represent a solid performance for the second quarter.

About Goodfellow

Goodfellow is a diversified manufacturer of value-added lumber products, as well as a wholesale distributor of building materials and floor coverings. Goodfellow has a distribution footprint from coast-to-coast in Canada servicing commercial and residential sectors through lumber yard retailer networks, manufacturers, industrial and infrastructure project partners, and floor covering specialists. Goodfellow also leverages its value-added product capabilities to serve lumber markets internationally. Goodfellow Inc. is a publicly traded company, and its shares are listed on the Toronto Stock Exchange under the symbol “GDL”.

GOODFELLOW INC.    
Consolidated Statements of Comprehensive Income
For the three and six months ended May 31, 2023 and 2022
(in thousands of dollars, except per share amounts)
Unaudited    
         
  For the three months ended For the six months ended
  May 312023 May 312022 May 312023 May 312022
  $ $ $ $
         
Sales 142,326 184,947 248,251 314,312
Expenses        
Cost of goods sold 110,034 143,745 194,294 245,001
Selling, administrative and general expenses 22,239 22,900 43,923 43,338
Net financial costs 921 882 1,195 1,446
  133,194 167,527 239,412 289,785
         
Earnings before income taxes 9,132 17,420 8,839 24,527
         
Income taxes 2,557 4,878 2,475 6,868
         
Total comprehensive income 6,575 12,542 6,364 17,659
         
         
Net earnings per share – Basic and Diluted 0.77 1.46 0.75 2.06
GOODFELLOW INC.   
Consolidated Statements of Financial Position   
(in thousands of dollars)
Unaudited
       
  As at As at As at
  May 312023 November 302022 May 312022
  $ $ $
Assets      
Current Assets      
Cash 3,171 3,420 2,608
Trade and other receivables 87,163 64,423 101,654
Income taxes receivable 6,001 2,439 1,078
Inventories 122,268 112,294 141,126
Prepaid expenses 2,263 2,555 9,451
Total Current Assets 220,866 185,131 255,917
       
Non-Current Assets      
Property, plant and equipment 32,405 32,269 30,782
Intangible assets 1,795 2,096 2,388
Right-of-use assets 12,916 14,999 13,663
Defined benefit plan asset 11,760 11,620 10,426
Other assets 802 802 802
Total Non-Current Assets 59,678 61,786 58,061
Total Assets 280,544 246,917 313,978
       
Liabilities      
Current Liabilities      
Bank indebtedness 34,002 - 72,320
Trade and other payables 36,553 36,286 44,322
Provision 2,252 2,281 405
Current portion of lease liabilities 4,748 4,969 4,605
Total Current Liabilities 77,555 43,536 121,652
       
Non-Current Liabilities      
Provision 770 634 2,255
Lease liabilities 10,189 12,537 11,738
Deferred income taxes 3,431 3,431 3,151
Total Non-Current Liabilities 14,390 16,602 17,144
Total Liabilities 91,945 60,138 138,796
       
Shareholders’ Equity      
Share capital 9,394 9,419 9,424
Retained earnings 179,205 177,360 165,758
  188,599 186,779 175,182
Total Liabilities and Shareholders’ Equity 280,544 246,917 313,978
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three and six months ended May 31, 2023 and 2022
(in thousands of dollars)
Unaudited
         
For the three months ended For the six months ended
  May 31 2023 May 31 2022 May 31 2023 May 31 2022
  $ $ $ $
Operating Activities        
Net earnings 6,575 12,542 6,364 17,659
Adjustments for:        
Depreciation and amortization of:        
Property, plant and equipment 795 577 1,540 1,152
Intangible assets 150 152 301 302
Right-of-use assets 1,188 1,140 2,445 2,190
Accretion expense on provision 68 26 136 51
Provision (7) 462 (29) 462
Income taxes 2,557 4,878 2,475 6,868
Gain on disposal of property, plant and equipment (171) (10) (181) (35)
Interest expense 481 385 569 499
Interest on lease liabilities 158 147 140 278
Funding in excess of pension plan expense (70) (15) (140) (29)
Other (10) (24) (139) (25)
  11,714 20,260 13,481 29,372
         
Changes in non-cash working capital items (15,844) (32,520) (32,124) (68,474)
Interest paid (632) (617) (740) (887)
Income taxes paid (3,019) (3,277) (6,037) (16,968)
  (19,495) (36,414) (38,901) (86,329)
Net Cash Flows from Operating Activities (7,781) (16,154) (25,420) (56,957)
         
Financing Activities        
Net (decrease) increase in bank loans (2,000) - - 11,000
Net increase in banker’s acceptances 23,000 32,000 28,000 53,000
Payment of lease liabilities (1,287) (1,233) (2,792) (2,420)
Redemption of shares (150) - (270) -
Dividends paid (4,274) (3,425) (4,274) (3,425)
Net Cash Flows from Financing Activities 15,289 27,342 20,664 58,155
         
Investing Activities        
Acquisition of property, plant and equipment (839) (1,468) (1,683) (1,912)
Increase in intangible assets - (40) - (40)
Proceeds on disposal of property, plant and equipment 178 10 188 35
Net Cash Flows from Investing Activities (661) (1,498) (1,495) (1,917)
         
Net cash inflow (outflow) 6,847 9,690 (6,251) (719)
Cash position, beginning of period (9,678) (13,402) 3,420 (2,993)
Cash position, end of period (2,831) (3,712) (2,831) (3,712)
         
Cash position is comprised of:        
Cash 3,171 2,608 3,171 2,608
Bank overdraft (6,002) (6,320) (6,002) (6,320)
  (2,831) (3,712) (2,831) (3,712)
GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the six months ended May 31, 2023 and 2022
(in thousands of dollars)
Unaudited
  Share Capital Retained Earnings Total
  $ $ $
       
Balance as at November 30, 2021 9,424 151,524 160,948
       
Net earnings - 17,659 17,659
       
Total comprehensive income - 17,659 17,659
       
       
Dividend - (3,425) (3,425)
       
Balance as at May 31, 2022 9,424 165,758 175,182
       
 
 
Balance as at November 30, 2022 9,419 177,360 186,779
       
Net earnings - 6,364 6,364
       
Total comprehensive income - 6,364 6,364
       
Dividend - (4,274) (4,274)
Redemption of Shares (25) (245) (270)
       
Balance as at May 31, 2023 9,394 179,205 188,599
From:   Goodfellow Inc.
    Patrick Goodfellow
    President and CEO
    T: 450 635-6511
    F: 450 635-3730
    info@goodfellowinc.com
Goodfellow (TSX:GDL)
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